Fastly (FSLY) Narrower Q4 Loss Sparks Debate Over Long Awaited Margin Turnaround

Simply Wall St.02-13

Fastly (FSLY) has wrapped up FY 2025 with fourth quarter revenue of US$172.6 million and a basic EPS loss of US$0.10, setting the tone for another year where top line progress sits alongside ongoing ...

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The company has seen quarterly revenue move from US$140.6 million in Q4 2024 to US$172.6 million in Q4 2025, while basic EPS losses shifted from US$0.23 to US$0.10 over the same period. Over the trailing 12 months it generated US$624.0 million of revenue with a basic EPS loss of US$0.83...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4613":"AI应用软件","BK4585":"ETF&股票定投概念","BK4554":"元宇宙及AR概念","BK4608":"AI应用概念股","FSLY":"Fastly, Inc.","BK4116":"互联网服务与基础架构","BK4588":"碎股"},"translate_title":"Fastly(FSLY)第四季度亏损收窄引发有关期待已久的利润率扭亏为盈的争论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"FSLY":1.5},"content_text":"Fastly (FSLY) has wrapped up FY 2025 with fourth quarter revenue of US$172.6 million and a basic EPS loss of US$0.10, setting the tone for another year where top line progress sits alongside ongoing red ink. The company has seen quarterly revenue move from US$140.6 million in Q4 2024 to US$172.6 million in Q4 2025, while basic EPS losses shifted from US$0.23 to US$0.10 over the same period. Over the trailing 12 months it generated US$624.0 million of revenue with a basic EPS loss of US$0.83. For investors, the focus is on how quickly these improving headline numbers can translate into cleaner margins and a path toward a more sustainable earnings profile. See our full analysis for Fastly. With the latest figures on the table, the next step is to see how these results compare with the widely held narratives around Fastly's growth potential, risk profile, and long term margin story. See what the community is saying about Fastly NasdaqGS:FSLY Revenue & Expenses Breakdown as at Feb 2026 AdvertisementUS$121.7 million loss still defines the year  On a trailing 12 month basis, Fastly booked US$624.0 million of revenue and a net loss of US$121.7 million, with basic EPS at a loss of US$0.83. Bulls argue that shrinking losses over five years at roughly 5.2% per year support a gradual march toward healthier margins. However, the latest 12 month loss of US$121.7 million and ongoing negative EPS keep that bullish view heavily dependent on further cost discipline and revenue quality rather than just top line growth around 10% a year.  Quarterly loss halves from US$32.9 million to US$15.5 million  Net loss in Q4 2025 came in at US$15.5 million, compared with US$32.9 million in Q4 2024, while quarterly revenue over the same periods was US$172.6 million and US$140.6 million respectively. For the bullish narrative that talks about multi year contracts, cross selling and higher margin products, this narrower quarterly loss supports the idea that operating leverage is starting to show up. At the same time, the full year loss of US$121.7 million and a trailing EPS loss of US$0.83 underline that Fastly is still firmly in loss making territory and any margin story has to be judged over several more reporting periods.  Have a look at how supporters of the optimistic case connect these margin shifts to future potential: 🐂 Fastly Bull Case 3.8x P/S with high volatility in the mix  Fastly currently trades on a P/S of 3.8x, compared with about 2.1x for the broader US IT industry and roughly 4.3x for its peer group, while the share price has also seen material swings over the past three months. Bears point to this elevated P/S, persistent unprofitability for at least the next three years and recent insider selling as signs the risk side is still significant. The combination of a 3.8x sales multiple, a US$121.7 million trailing loss and higher share price volatility gives that cautious view some grounding even as revenue grows around 10% a year.  Skeptics think those valuation and volatility numbers matter more than the improving loss trend, and they lay out that argument in detail here: 🐻 Fastly Bear Case  Next Steps To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Fastly on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. See the numbers differently? If this data points you in another direction, shape your own view in a few minutes and share it with other investors: Do it your way. A great starting point for your Fastly research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision. See What Else Is Out There Fastly still carries a US$121.7 million annual loss, negative EPS and a relatively high 3.8x P/S, which together highlight meaningful profitability and valuation risks. If those risks feel a bit heavy, you might want to balance your portfolio by hunting for companies with steadier profiles using our 84 resilient stocks with low risk scores that focus on resilience instead of ongoing losses and volatile pricing.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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